Bernie Ecclestone has hinted at plans to overhaul the distribution of team prize money in Formula One before current contracts expire in 2020.
Ecclestone has said that a revamped distribution model could draw inspiration from the one currently used by the Premier League.
“The Premier League has a good way of distributing the prize money, so maybe that could work for us. There will be people who will like it and people who won’t like it, and people who will suffer,” said Ecclestone.
Currently the Formula 1 prize money is distributed using two-tier payment system. The first tier is the guaranteed payment equally divided amongst the top 10 teams, while the second tier is based on season performance.
Ahead of floatation on the Singapore stock exchange CVC, who hold a majority share in Formula 1, introduced historical bonus payments based on past performance in a bid to reassure investors that big name teams such as Ferrari, Williams and Mercedes would remain in Formula 1.
The historical payments bonus continues to be met with heavy criticism from the rest of the paddock who see it as preferential treatment given to the bigger teams. September last year saw Force India and Sauber lodge complaints to the EU, citing Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibit anti-competitive agreements and the abuse of dominant market positions.
Removing historical payments will mean Ferrari suffering the biggest loses. In 2014 the Italian team were given a £60 million bonus taking their total prize money £25 million above the earnings of Constructors’ Champions Mercedes.
